Loans experienced solid growth from the prior quarter of 4.2% on an annualized basis;

Deposits grew from the prior quarter at an annualized rate of 8.6%;

The net interest margin remained relatively stable at 3.27%; and

Noninterest income grew by 13.2% from the prior quarter.

Net Income

Second quarter net income was $12.0 million, or $0.14 diluted earnings per share. Net income was impacted by the following items:

Net interest income increased by $0.3 million to $50.0 million as compared to the prior quarter, primarily as a result of strong commercial loan growth;

Noninterest income increased by $1.8 million, driven by mortgage gain on sale income and commercial swap income;

Noninterest expense of $37.4 million decreased $0.7 million from the previous quarter and is now at the lowest level since the fourth quarter of 2007; and

Provision for credit losses totaled $10.4 million, an increase of $3.8 million from the previous quarter, primarily due to a $7.5 million specific reserve set aside against an energy-related credit.

"While the additional credit expense due to the ongoing downturn in the energy sector is disappointing, we are pleased with the progression in our second quarter results, as evidenced by growth in loans and deposits and an efficiency ratio below 60%," stated T. Michael Price, President and Chief Executive Officer. "The acquisition of 13 branches in Ohio that we are announcing today is also encouraging, and should improve our financial performance. We must, however, continue to keep our shoulder to the wheel to organically grow revenue while at the same time improving credit costs and keeping operating expenses under control."

For the three months ended June 30, 2016, net income was $12.0 million, or $0.14 diluted earnings per share, compared to net income of $12.5 million, or $0.14 diluted earnings per share, in the first quarter of 2016 and net income of $13.4 million, or $0.15 diluted earnings per share, in the second quarter of 2015. The decrease in net income compared to the first quarter of 2016 was driven by a $3.8 million increase in provision for credit losses, offset by a $1.8 million increase in noninterest income and a decrease of $0.7 million in noninterest expense from the first quarter of 2016. The decrease in net income compared to the second quarter of 2015 was primarily driven by an increase of $7.3 million in the provision for credit losses and a decrease in noninterest income of $0.8 million, offset by an increase of $2.8 million in net interest income and a decrease of $3.2 million in noninterest expense.

For the six months ended June 30, 2016, net income was $24.5 million, or $0.28 diluted earnings per share, compared to net income of $27.7 million, or $0.31 diluted earnings per share, for the comparable period in 2015. The decrease in net income compared to 2015 was primarily the result of a $12.7 million increase in the provision for credit losses and a decrease in noninterest income, excluding net securities gains, of $1.2 million, offset by an increase of $4.6 million in net interest income and a decrease in noninterest expense of $4.9 million.

For the six months ended June 30, 2016, return on average assets and return on average equity were 0.74% and 6.70%, respectively, as compared to 0.88% and 7.80% in the first half of 2015. Return on average tangible common equity was 8.7% in the first half of 2016, as compared to 10.1% for the first half of 2015.

Net Interest Income and Net Interest Margin

Second quarter 2016 net interest income, on a fully taxable-equivalent basis, increased by $0.3 million to $50.0 million compared to the first quarter of 2016. The increase from the prior quarter was primarily the result of strong commercial loan growth. The yield on interest-earning assets and funding costs remained relatively stable during the quarter. A $77.9 million increase in average interest-earning assets contributed to the improvement in net interest income.

As compared to the second quarter of 2015, net interest income, on a fully taxable-equivalent basis, increased by $2.8 million, driven largely by a $347.4 million, or 6.0%, increase in average interest-earning assets. The net interest margin of 3.27% in the second quarter of 2016 was one basis point higher than in the second quarter of 2015. The increase came despite a seven basis point increase in funding costs that more than offset a six basis point increase in the yield on interest-earning assets between the periods, and benefited from an increase of $92.0 million in average non-interest bearing deposits.

For the six months ended June 30, 2016, net interest income, on a fully taxable-equivalent basis, increased $4.6 million to $99.8 million as compared to the same period of 2015. The increase in net interest income was a result of a $303.0 million increase in average interest-earning assets and a two basis point increase in the yield on interest-earning assets, offset by a five basis point increase in funding costs.

Total deposits grew by $92.9 million in the second quarter of 2016, or 8.6% annualized. Average deposits increased $131.6 million in the second quarter of 2016 from the prior quarter. Average deposits increased $110.0 million from the year-ago quarter, which includes the addition of $89.9 million in deposits acquired as part of the First Community acquisition. The year over year comparison is driven by decreases of $46.5 million in time deposits and $69.7 million in brokered deposits, offset by $134.2 million of core deposit growth in savings deposits and $92.0 million of core deposit growth in noninterest-bearing deposits.

Average short-term borrowings decreased $55.6 million from the prior quarter as deposit growth outpaced loan growth in the second quarter, but increased $243.0 million over the year-ago period, partly due to the aforementioned runoff in time and brokered deposits compared to a year ago. Average noninterest-bearing demand deposits increased $40.9 million as compared to the prior quarter and increased $92.0 million from the year-ago quarter, due in part to the addition of $11.6 million related to the First Community acquisition.

Noninterest-bearing demand deposits currently comprise 25.9% of total deposits. Average interest-bearing demand and savings deposits increased $107.0 million from the prior quarter and $134.2 million from the year-ago period, which includes the addition of $36.1 million related to the First Community acquisition.

Credit Quality

The provision for credit losses totaled $10.4 million for the quarter ended June 30, 2016, an increase of $3.8 million as compared to the prior quarter and an increase of $7.3 million from the same quarter last year. The second quarter 2016 provision for credit losses included a $7.5 million specific reserve for a credit related to the manufacturing of safety products for the mining industry.

At June 30, 2016, nonperforming loans were $64.4 million, an increase of $2.6 million from March 31, 2016 and an increase of $19.3 million from June 30, 2015. The increase from the first quarter of 2016 was related to the aforementioned commercial credit placed into nonperforming status in the second quarter of 2016. Nonperforming loans as a percentage of total loans were 1.33%, 1.29% and 1.00% for the periods ended June 30, 2016, March 31, 2016 and June 30, 2015, respectively.

During the second quarter of 2016, net charge-offs were $5.8 million, compared to $2.1 million in the prior quarter and $4.4 million in the second quarter of 2015. Of the $5.8 million in net charge-offs in the second quarter, $3.3 million represented charge-offs of previously established reserves.

The allowance for credit losses was $59.8 million at June 30, 2016, and as a percentage of total loans outstanding was 1.24%, 1.15% and 1.01% for June 30, 2016, March 31, 2016 and June 30, 2015, respectively. General reserves as a percentage of non-impaired loans were 0.93%, 0.88% and 0.98% for June 30, 2016, March 31, 2016 and June 30, 2015, respectively.

Other real estate owned (OREO) acquired through foreclosure was $8.6 million at June 30, 2016 and March 31, 2016 and $6.5 million at June 30, 2015. There were no significant additions to OREO in the second quarter of 2016.

Noninterest Income

Noninterest income, excluding net securities gains, increased $1.8 million in the second quarter of 2016 as compared to the prior quarter and decreased $0.8 million compared to the same quarter last year. The increase from the prior quarter is primarily the result of a $0.5 million positive variance from prior quarter in the adjustment for the fair market value of commercial loan interest rate swaps, as well as a $0.3 million increase in swap income, an increase of $0.2 million in card-related interchange income and an increase of $0.2 million from the gain on sale of mortgage loans.

The decrease in noninterest income from the prior-year period of $0.8 million is primarily related to a negative variance of $1.1 million in the adjustment for the fair market value of commercial loan interest rate swaps and a decline of $0.4 million in trust, insurance and retail brokerage commissions, offset by a $0.5 million increase in swap income and a $0.3 million increase in gain on the sale of mortgage loans.

For the six months ended June 30, 2016, noninterest income, excluding net securities gains, decreased $1.2 million, or 3.8%, as compared to the same period of 2015, primarily attributable to a negative variance of $1.9 million in the adjustment for the fair market value of commercial loan interest rate swaps and a decline of $0.8 million in trust, insurance and retail brokerage commissions, offset by a $0.6 million increase in swap income, an increase of $0.6 million from the gain on sale of mortgage loans, an increase of $0.4 million in service charges on deposit accounts, and an increase of $0.2 million in card-related interchange income.

Noninterest Expense

Noninterest expense decreased $0.7 million to $37.4 million in the second quarter of 2016 as compared to the prior quarter and decreased $3.2 million as compared to the second quarter of 2015. Salaries and benefits decreased $1.8 million as compared to the prior quarter primarily due to the realignment of the staffing and capabilities of our consumer banking businesses and from relatively low benefits costs. Also impacting noninterest expense was lower occupancy costs from the prior quarter, offset by higher operational losses, Pennsylvania shares tax expense and the write-down of three OREO properties in the second quarter of 2016.

Noninterest expense decreased $3.2 million in the second quarter of 2016 as compared to the second quarter of 2015, primarily attributable to decreases in salaries and benefits of $2.1 million as compared to the prior year due to the aforementioned realignment of our consumer banking businesses and relatively low benefits costs, decreased collection and repossession expenses, lower write-downs on assets of $1.3 million (primarily due to write-downs of three OREO properties and a loss on the write-down of a building in the second quarter of 2015) and a decline of $0.8 million in the reserve for unfunded loan commitments, included in other operating expenses. These items were offset by higher data processing costs and operational losses during the second quarter of 2016.

For the six months ending June 30, 2016, noninterest expense decreased $4.9 million, or 6.1%, as compared to the same period of 2015, driven by a decline in salaries and benefits of $2.3 million due to the previously mentioned realignment of our consumer businesses and relatively low benefits costs, and a decline of $1.7 million in provision expense associated with the reserve for unfunded loan commitments, included in other operating expenses. The aforementioned lower write-downs on assets of $1.5 million, $0.4 million of decreased collection and repossession expenses and $0.4 million of lower operational losses also contributed to the positive variance. These decreases were offset by higher data processing expense of $0.6 million due to the issuance of chip debit cards during the first six months of 2016.

Full time equivalent staff declined to 1,168 at June 30, 2016 from 1,216 and 1,289 at March 31, 2016 and June 30, 2015, respectively. The decrease is primarily attributable to staff reductions as a result of the realignment of our consumer banking businesses, offset by the recent expansion of mortgage and commercial banking businesses in our Ohio market.

The efficiency ratio, calculated as total noninterest expense as a percentage of total revenue (which consists of net interest income on a fully taxable equivalent basis plus total noninterest income, excluding net securities gains), was 57.06% and 58.56% for the three and six months ended June 30, 2016 as compared to 63.96% and 64.08% for the three and six months ended June 30, 2015. The core efficiency ratio, which excludes securities gains and losses, amortization of intangible assets and other nonrecurring items, was 57.24% and 58.37% for the three and six months ended June 30, 2016 as compared to 63.25% and 63.04% for the three and six months ended June 30, 2015. The Consolidated Financial Highlights accompanying this news release include additional information regarding reconciliations of non-GAAP financial measures to reported amounts, including a reconciliation of the core efficiency ratio.

Dividends and Capital

First Commonwealth Financial Corporation declared a common stock quarterly dividend of $0.07 per share, which is payable on August 19, 2016 to shareholders of record as of August 8, 2016. This dividend represents a 3.0% projected annual yield utilizing the July 26, 2016 closing market price of $9.49.

On January 27, 2016, First Commonwealth's Board of Directors authorized an additional $25.0 million common stock repurchase program, under which the corporation repurchased 45,612 shares at an average price of $8.44 per share in the first six months of 2016, totaling $0.4 million. This repurchase program was suspended in July as a result of the acquisition of 13 branches in Ohio which management believes represents a better use of capital for shareholders.

First Commonwealth's capital ratios for Total, Tier I, Leverage and Common Equity Tier I at June 30, 2016 were 12.2%, 11.1%, 9.8% and 9.9%, respectively. Our current capital levels meet the fully-phased in Basel III capital requirements issued by the U.S. bank regulators.

Conference Call

First Commonwealth will host a quarterly conference call to discuss its financial results for the second quarter 2016 on Wednesday, July 27, 2016 at 2:00 PM (ET). The call can be accessed by dialing (toll free) 1-844-792-3645 or through the company's web page, http://www.fcbanking.com/InvestorRelations. A replay of the call will be available approximately one hour following the conclusion of the conference. A link to the call replay will be accessible at this web page for 30 days.

About First Commonwealth Financial Corporation

First Commonwealth Financial Corporation (NYSE: FCF), headquartered in Indiana, Pennsylvania, is a financial services company with $6.7 billion in total assets and 109 banking offices in 17 counties throughout western and central Pennsylvania and central Ohio, as well as a Corporate Banking Center in northeast Ohio and mortgage offices in Stow and Dublin, Ohio. First Commonwealth provides a full range of commercial banking, consumer banking, mortgage, wealth management and insurance products and services through its subsidiaries First Commonwealth Bank and First Commonwealth Insurance Agency. For more information about First Commonwealth or to open an account today, please visit www.fcbanking.com.

Forward-Looking Statements

This release contains forward-looking statements about First Commonwealth's future plans, strategies and financial performance. These statements can be identified by the fact that they do not relate strictly to historical or current facts and often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may." Such statements are based on assumptions and involve risks and uncertainties, many of which are beyond our control. Factors that could cause actual results, performance or achievements to differ from those discussed in the forward-looking statements include, but are not limited to: (1) local, regional, national and international economic conditions and the impact they may have on First Commonwealth and its customers; (2) volatility and disruption in national and international financial markets; (3) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; (4) inflation, interest rate, commodity price, securities market and monetary fluctuations; (5) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which First Commonwealth must comply; (6) the soundness of other financial institutions; (7) political instability; (8) impairment of First Commonwealth's goodwill or other intangible assets; (9) acts of God or of war or terrorism; (10) the timely development and acceptance of new products and services and perceived overall value of these products and services by users; (11) changes in consumer spending, borrowings and savings habits; (12) changes in the financial performance and/or condition of First Commonwealth's borrowers; (13) technological changes; (14) acquisitions and integration of acquired businesses; (15) First Commonwealth's ability to attract and retain qualified employees; (16) changes in the competitive environment in First Commonwealth's markets and among banking organizations and other financial service providers; (17) the ability to increase market share and control expenses; (18) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (19) the reliability of First Commonwealth's vendors, internal control systems or information systems; (20) the costs and effects of legal and regulatory developments, the resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; and (21) other risks and uncertainties described in the reports that First Commonwealth files with the Securities and Exchange Commission, including its most recent Annual Report on Form 10‐K. Forward-looking statements speak only as of the date on which they are made. First Commonwealth undertakes no obligation to update any forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands, except per share data)

For the Three Months Ended

For the Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

2016

2016

2015

2016

2015

SUMMARY RESULTS OF OPERATIONS

Net interest income (FTE) (1)

$

50,034

$

49,749

$

47,205

$

99,783

$

95,195

Provision for credit losses

10,372

6,526

3,038

16,898

4,197

Noninterest income

15,558

13,715

16,347

29,273

30,538

Noninterest expense

37,410

38,144

40,634

75,554

80,488

Net income

12,007

12,473

13,447

24,480

27,668

Earnings per common share (diluted)

$

0.14

$

0.14

$

0.15

$

0.28

$

0.31

KEY FINANCIAL RATIOS

Return on average assets

0.72

%

0.76

%

0.85

%

0.74

%

0.88

%

Return on average shareholders' equity

6.53

%

6.87

%

7.57

%

6.70

%

7.80

%

Return on average tangible common equity (8)

8.41

%

8.88

%

9.82

%

8.65

%

10.10

%

Efficiency ratio (2)

57.06

%

60.10

%

63.96

%

58.56

%

64.08

%

Core efficiency ratio (3)

57.24

%

59.53

%

63.25

%

58.37

%

63.04

%

Net interest margin (FTE) (1)

3.27

%

3.29

%

3.26

%

3.28

%

3.30

%

Book value per common share

$

8.34

$

8.24

$

7.99

Tangible book value per common share (7)

6.48

6.38

6.16

Market value per common share

9.20

8.86

9.59

Cash dividends declared per common share

0.07

0.07

0.07

$

0.14

$

0.14

ASSET QUALITY RATIOS

Nonperforming loans as a percent of end-of-period loans (4)

1.33

%

1.29

%

1.00

%

Nonperforming assets as a percent of total assets (4)

1.09

%

1.06

%

0.82

%

Net charge-offs as a percent of average loans (annualized)

0.48

%

0.18

%

0.39

%

Allowance for credit losses as a percent of nonperforming loans (5)

92.88

%

89.33

%

106.26

%

Allowance for credit losses as a percent of end-of-period loans (5)

1.24

%

1.15

%

1.01

%

CAPITAL RATIOS

Shareholders' equity as a percent of total assets

11.0

%

10.9

%

11.3

%

Tangible common equity as a percent of tangible assets (6)

8.8

%

8.7

%

8.9

%

Leverage Ratio

9.8

%

9.8

%

10.0

%

Risk Based Capital - Tier I

11.1

%

11.1

%

11.5

%

Risk Based Capital - Total

12.2

%

12.1

%

12.4

%

Common Equity - Tier I

9.9

%

9.9

%

10.2

%

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands, except per share data)

For the Three Months Ended

For the Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

2016

2016

2015

2016

2015

INCOME STATEMENT

Interest income

$

53,850

$

53,353

$

50,150

$

107,203

$

101,235

Interest expense

4,759

4,546

3,780

9,305

7,693

Net Interest Income

49,091

48,807

46,370

97,898

93,542

Taxable equivalent adjustment (1)

943

942

835

1,885

1,653

Net Interest Income (FTE)

50,034

49,749

47,205

99,783

95,195

Provision for credit losses

10,372

6,526

3,038

16,898

4,197

Net Interest Income after Provision for Credit Losses (FTE)

39,662

43,223

44,167

82,885

90,998

Net securities (losses) gains

28

-

20

28

125

Trust income

1,320

1,255

1,476

2,575

2,897

Service charges on deposit accounts

3,845

3,708

3,872

7,553

7,190

Insurance and retail brokerage commissions

1,985

1,959

2,178

3,944

4,373

Income from bank owned life insurance

1,311

1,296

1,378

2,607

2,732

Gain on sale of mortgage loans

932

683

585

1,615

1,024

Gain on sale of other loans and assets

466

195

396

661

620

Card-related interchange income

3,784

3,557

3,729

7,341

7,147

Derivative mark-to-market

(531

)

(1,014

)

593

(1,545

)

363

Swap fee income

800

460

283

1,260

643

Other income

1,618

1,616

1,837

3,234

3,424

Total Noninterest Income

15,558

13,715

16,347

29,273

30,538

Salaries and employee benefits

19,888

21,677

22,001

41,565

43,893

Net occupancy

3,186

3,481

3,316

6,667

7,227

Furniture and equipment

2,882

2,867

2,630

5,749

5,310

Data processing

1,788

1,759

1,509

3,547

2,947

Pennsylvania shares tax

1,092

758

1,110

1,850

1,904

Intangible amortization

114

137

156

251

312

Collection and repossession

474

569

917

1,043

1,428

Other professional fees and services

913

791

945

1,704

1,875

FDIC insurance

1,062

1,038

1,025

2,100

2,084

Litigation and operational losses

635

244

323

879

1,323

Loss on sale or write-down of assets

345

96

1,635

441

1,897

Other operating expenses

5,031

4,727

5,067

9,758

10,288

Total Noninterest Expense

37,410

38,144

40,634

75,554

80,488

Income before Income Taxes

17,810

18,794

19,880

36,604

41,048

Taxable equivalent adjustment (1)

943

942

835

1,885

1,653

Income tax provision

4,860

5,379

5,598

10,239

11,727

Net Income

$

12,007

$

12,473

$

13,447

$

24,480

$

27,668

Shares Outstanding at End of Period

88,949,995

88,959,315

88,960,268

88,949,995

88,960,268

Average Shares Outstanding Assuming Dilution

88,838,614

88,845,201

88,939,003

88,840,683

89,903,550

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands)

June 30,

March 31,

June 30,

2016

2016

2015

BALANCE SHEET (Period End)

Assets

Cash and due from banks

$

68,163

$

62,141

$

64,321

Interest-bearing bank deposits

30,457

11,024

3,120

Securities available for sale, at fair value

913,420

950,795

1,143,072

Securities held to maturity, at amortized cost

405,976

396,444

131,780

Loans held for sale

11,613

5,849

9,817

Loans

4,843,776

4,798,755

4,490,854

Allowance for credit losses

(59,821

)

(55,222

)

(45,344

)

Net loans

4,783,955

4,743,533

4,445,510

Goodwill and other intangibles

165,481

165,594

162,781

Other assets

370,756

363,774

356,327

Total Assets

$

6,749,821

$

6,699,154

$

6,316,728

Liabilities and Shareholders' Equity

Noninterest-bearing demand deposits

$

1,136,629

$

1,155,795

$

1,068,230

Interest-bearing demand deposits

88,777

92,125

76,865

Savings deposits

2,582,709

2,467,978

2,441,888

Time deposits

586,405

585,757

623,124

Total interest-bearing deposits

3,257,891

3,145,860

3,141,877

Total deposits

4,394,520

4,301,655

4,210,107

Short-term borrowings

1,464,687

1,518,742

1,231,917

Long-term borrowings

81,201

81,342

111,356

Total borrowings

1,545,888

1,600,084

1,343,273

Other liabilities

67,627

64,101

52,142

Shareholders' equity

741,786

733,314

711,206

Total Liabilities and Shareholders' Equity

$

6,749,821

$

6,699,154

$

6,316,728

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands)

For the Three Months Ended

For the Six Months Ended

June 30,

Yield/

March 31,

Yield/

June 30,

Yield/

June 30,

Yield/

June 30,

Yield/

2016

Rate

2016

Rate

2015

Rate

2016

Rate

2015

Rate

NET INTEREST MARGIN

Assets

Loans (FTE)(1)(4)

$

4,833,360

3.86

%

$

4,745,252

3.88

%

$

4,498,965

3.87

%

$

4,789,306

3.87

%

$

4,488,660

3.89

%

Securities and interest bearing bank deposits (FTE) (1)

1,321,018

2.54

%

1,331,233

2.57

%

1,308,016

2.33

%

1,326,125

2.56

%

1,323,762

2.47

%

Total Interest-Earning Assets (FTE) (1)

6,154,378

3.58

%

6,076,485

3.59

%

5,806,981

3.52

%

6,115,431

3.59

%

5,812,422

3.57

%

Noninterest-earning assets

552,754

541,109

554,175

546,932

547,359

Total Assets

$

6,707,132

$

6,617,594

$

6,361,156

$

6,662,363

$

6,359,781

Liabilities and Shareholders' Equity

Interest-bearing demand and savings deposits

$

2,660,934

0.16

%

$

2,553,896

0.11

%

$

2,526,744

0.11

%

$

2,607,415

0.13

%

$

2,514,015

0.11

%

Time deposits

578,518

0.62

%

594,929

0.62

%

694,725

0.69

%

586,723

0.62

%

741,738

0.73

%

Short-term borrowings

1,447,452

0.58

%

1,503,013

0.60

%

1,204,466

0.37

%

1,475,233

0.59

%

1,172,957

0.36

%

Long-term borrowings

81,268

3.62

%

81,409

3.57

%

122,410

2.57

%

81,339

3.59

%

134,831

2.38

%

Total Interest-Bearing Liabilities

4,768,172

0.40

%

4,733,247

0.39

%

4,548,345

0.33

%

4,750,710

0.39

%

4,563,541

0.34

%

Noninterest-bearing deposits

1,137,626

1,096,692

1,045,659

1,117,159

1,024,197

Other liabilities

61,821

57,301

55,042

59,561

56,848

Shareholders' equity

739,513

730,354

712,110

734,933

715,195

Total Noninterest-Bearing Funding Sources

1,938,960

1,884,347

1,812,811

1,911,653

1,796,240

Total Liabilities and Shareholders' Equity

$

6,707,132

$

6,617,594

$

6,361,156

$

6,662,363

$

6,359,781

Net Interest Margin (FTE) (annualized)(1)

3.27

%

3.29

%

3.26

%

3.28

%

3.30

%

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands)

June 30,

March 31,

June 30,

2016

2016

2015

Loan Portfolio Detail

Commercial Loan Portfolio:

Commercial, financial, agricultural and other

$

1,185,062

$

1,190,384

$

1,098,019

Commercial real estate

1,648,222

1,552,904

1,416,841

Real estate construction

242,132

256,856

125,010

Total Commercial

3,075,416

3,000,144

2,639,870

Consumer Loan Portfolio:

Closed-end mortgages

732,394

745,924

746,554

Home equity lines of credit

466,611

467,038

457,945

Total Real Estate - Consumer

1,199,005

1,212,962

1,204,499

Auto loans

481,887

499,897

559,438

Direct installment

25,160

25,126

26,095

Personal lines of credit

48,358

45,905

43,877

Student loans

13,950

14,721

17,075

Total Other Consumer

569,355

585,649

646,485

Total Consumer Portfolio

1,768,360

1,798,611

1,850,984

Total Portfolio Loans

4,843,776

4,798,755

4,490,854

Loans held for sale

11,613

5,849

9,817

Total Loans

$

4,855,389

$

4,804,604

$

4,500,671

June 30,

March 31,

June 30,

2016

2016

2015

ASSET QUALITY DETAIL

Nonperforming Loans:

Loans on nonaccrual basis

$

38,404

$

33,470

$

21,776

Troubled debt restructured loans held for sale on nonaccrual basis

-

-

2,432

Troubled debt restructured loans on nonaccrual basis

9,672

13,366

8,619

Troubled debt restructured loans on accrual basis

16,332

14,979

12,276

Total Nonperforming Loans

$

64,408

$

61,815

$

45,103

Other real estate owned ("OREO")

8,604

8,636

6,539

Repossessions ("Repos")

291

345

348

Total Nonperforming Assets

$

73,303

$

70,796

$

51,990

Loans past due in excess of 90 days and still accruing

1,384

1,330

1,592

Classified loans

101,998

110,816

79,924

Criticized loans

128,280

142,625

120,506

Nonperforming assets as a percentage of total loans, plus OREO and Repos

1.51

%

1.47

%

1.16

%

Allowance for credit losses

$

59,821

$

55,222

$

45,344

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands)

For the Three Months Ended

For the Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

2016

2016

2015

2016

2015

Net Charge-offs (Recoveries):

Commercial, financial, agricultural and other

$

4,689

$

1,258

$

2,702

$

5,947

$

7,582

Real estate construction

(4

)

(223

)

(84

)

(227

)

(84

)

Commercial real estate

116

(491

)

471

(375

)

535

Residential real estate

78

264

341

342

811

Loans to individuals

894

1,308

961

2,202

2,060

Net Charge-offs

$

5,773

$

2,116

$

4,391

$

7,889

$

10,904

Net charge-offs as a percentage of average loans outstanding (annualized)

0.48

%

0.18

%

0.39

%

0.33

%

0.49

%

Provision for credit losses as a percentage of net charge-offs

179.66

%

308.41

%

69.19

%

214.20

%

38.49

%

Provision for credit losses

$

10,372

$

6,526

$

3,038

$

16,898

$

4,197

DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES

(1) Net interest income has been computed on a fully taxable equivalent basis ("FTE") using the 35% federal income tax statutory rate.

(3) Core efficiency ratio excludes from total revenue the impact of derivative mark-to-market and excludes from "total noninterest expense" the amortization of intangibles, unfunded commitment expense and any other unusual items deemed by management to not be related to normal operations, such as merger, acquisition and severance costs.

(4) Includes held for sale loans.

(5) Excludes held for sale loans.

For the Three Months Ended

For the Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

2016

2016

2015

2016

2015

Core Efficiency Ratio:

Total Noninterest Expense

$

37,410

$

38,144

$

40,634

$

75,554

$

80,488

Adjustments to Noninterest Expense:

Unfunded commitment reserve

(540

)

(375

)

235

(915

)

741

Intangible amortization

114

137

156

251

312

Severance

-

-

-

-

-

Merger and acquisition related

-

-

-

-

-

Loss on sale or writedown of assets

-

-

436

-

486

Noninterest Expense - Core

$

37,836

$

38,382

$

39,807

$

76,218

$

78,949

Net interest income, fully tax equivalent

$

50,034

$

49,749

$

47,205

$

99,783

$

95,195

Total noninterest income

15,558

13,715

16,347

29,273

30,538

Net securities (losses) gains

28

-

20

28

125

Total Revenue

$

65,564

$

63,464

$

63,532

$

129,028

$

125,608

Adjustments to Revenue:

Derivative mark-to-market

(531

)

(1,014

)

593

(1,545

)

363

Total Revenue - Core

$

66,095

$

64,478

$

62,939

$

130,573

$

125,245

(3)Core Efficiency Ratio

57.24

%

59.53

%

63.25

%

58.37

%

63.04

%

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED FINANCIAL DATA

Unaudited

(dollars in thousands, except per share data)

DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES

June 30,

March 31,

June 30,

2016

2016

2015

Tangible Equity:

Total shareholders' equity

$

741,786

$

733,314

$

711,206

Less: intangible assets

165,481

165,594

162,781

Tangible Equity

576,305

567,720

548,425

Less: preferred stock

-

-

-

Tangible Common Equity

$

576,305

$

567,720

$

548,425

Tangible Assets:

Total assets

$

6,749,821

$

6,699,154

$

6,316,728

Less: intangible assets

165,481

165,594

162,781

Tangible Assets

$

6,584,340

$

6,533,560

$

6,153,947

(6)Tangible Common Equity as a percentage of Tangible Assets

8.75

%

8.69

%

8.91

%

Shares Outstanding at End of Period

88,949,995

88,959,315

88,960,268

(7)Tangible Book Value Per Common Share

$

6.48

$

6.38

$

6.16

For the Three Months Ended

For the Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

2016

2016

2015

2016

2015

Average Tangible Equity:

Total shareholders' equity

$

739,513

$

730,354

$

712,110

$

734,933

$

715,195

Less: intangible assets

165,527

165,666

162,865

165,597

162,942

Tangible Equity

573,986

564,688

549,245

569,336

552,253

Less: preferred stock

-

-

-

-

-

Tangible Common Equity

$

573,986

$

564,688

$

549,245

$

569,336

$

552,253

(8)Return on Average Tangible Common Equity

8.41

%

8.88

%

9.82

%

8.65

%

10.10

%

Note: Management believes that it is a standard practice in the banking industry to present these non-GAAP measures. These measures provide useful information to management and investors by allowing them to make peer comparisons.